Americans for Tax Reform has a list of 20 new or higher taxes on American families and small businesses. Consider printing out a few copies and them handy. When you dish up homemade ice cream for Liberal Uncle Louie on Independence Day, give him a copy. When you’re doing your daily walk around the block and encounter that obnoxious neighbor who runs 6 miles a day and glistens when she sweats, stop her and offer a copy as she jogs in place. Her annoyance will be worth it, and remember, you’re doing them a favor. Read the list here, sorted by their effective date and where to find them in the law, for your convenience. Thanks to BadBlue, the baddest news on the planet for the tip.
The Bush tax cuts expire on December 31st, 2012. Some of your new ObamaCare costs kick-in at the same time. Your new tax rates are below. I cannot link the source as it came to me from an investment advisor. If interested, a few days ago I posted on corporate tax cuts designed to shake down oil and gas, boost Unions and gain Democrat donors. Read it here.
When the new tax under health care reform is added to the expiration of the Bush tax cuts, in 2013:
• The top tax rate on ordinary income will rise from 35% to 43.4%—an increase of almost 25%
• The top tax rate on capital gains will rise from 15% to 23.8%—an increase of almost 60%
• The top tax rate on dividends will rise from 15% to 43.4%—an increase of almost 300%
• The estate tax exemption will drop from $5 million to $1 million and the estate tax rate will rise from 35% to 55%—an increase of over 55%
Most important, Congress need not pass a single piece of tax legislation in 2012 for these tax rates to take effect in 2013. They will happen by default.
Nearly all taxes impose hidden costs by choking off economic activity. In a soon-to-be-released Cato Institute study, Duke University professor Christopher J. Conover estimates how much economic activity the recently enacted health care law — the Patient Protection and Affordable Care Act — will destroy. Failing to account for those hidden costs of taxation and government spending can bias legislative decisions toward more costly policies. Conover argues that honest and transparent governance requires that Congress account for the “excess burden of taxation” in its legislative cost estimates, baseline budget projections, and budget options — much like the Office of Management and Budget already does.